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What is international finance?

Updated: 10/18/2022
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7y ago

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International finance is a way to maximize shareholder wealth. The features of international finance includes foreign exchange risk, political risk, expanded opportunity sets and market imperfections.

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7y ago

International finance refers to banking and investing that crosses national boundaries. For example, if a large US based bank makes a loan to the Mercedes Benz automobile maker in Germany, that is an international transaction and qualifies as international finance. Another recent example is the current loan making arrangement between the IMF and the government of Egypt. The IMF an international funding organization. The loans it makes to Egypt qualifies as international finance.

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